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Should You Buy, Sell, or Hold Rubrik Stock Before Q3 Earnings Release?

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Key Takeaways

  • Rubrik expects Q3 revenues of $319M-$321M, up 35%-36% year over year.
  • RBRK sees cloud ARR growth continuing after a 57% jump in fiscal Q2.
  • Rubrik's expanding clientele and new partnerships aim to support Q3 momentum.

Rubrik (RBRK - Free Report) is scheduled to release third-quarter fiscal 2026 results on Dec. 4.

For the to-be-reported quarter, RBRK expects revenues between $319 million and $321 million, reflecting a year-over-year growth rate of 35% to 36%.

The Zacks Consensus Estimate for revenues is pegged at $320.93 million, indicating a year-over-year increase of 35.88%.

The consensus mark for loss is pegged at 17 cents per share, widened by a penny over the past 30 days. Rubrik reported a loss of 21 cents per share in the year-ago quarter.

Rubrik, Inc. Price and EPS Surprise

Rubrik, Inc. Price and EPS Surprise

Rubrik, Inc. price-eps-surprise | Rubrik, Inc. Quote

Rubrik beat the Zacks Consensus Estimate in all the trailing four quarters, resulting in an average surprise of 61.70%.

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Consider for RBRK’s Q3 Earnings

Rubrik’s fiscal third-quarter performance is expected to have benefited from its strong position in the growing cyber resilience market and the increasing demand for its data security solutions.

The company has consistently demonstrated robust subscription ARR growth. In the second quarter of fiscal 2026, RBRK experienced a 27% year-over-year increase in customers with more than $100K in subscription annual recurring revenue (ARR), reaching 2,505 customers as of July 31, 2025. Rubrik’s cloud ARR grew 57%, reaching $1.1 billion, driven by the adoption of its Rubrik Security Cloud platform. This trend is likely to have positively impacted the to-be-reported quarter’s performance as well.

In the third quarter of fiscal 2026, RBRK expects a non-GAAP subscription ARR contribution margin of approximately 6.5%. It also expects subscription ARR growth in the to-be-reported quarter, with net new subscription ARR contributing approximately 21% to 22% of the full-year net new subscription ARR.

Rubrik continues to benefit from its cloud transformation, with cloud ARR growing 57% year over year in the second quarter of fiscal 2026.  This trend is expected to have continued in the to-be-reported quarter as well, further driving revenue growth.

RBRK Shares Underperform Sector

Rubrik shares have plunged 30.1% in the past six months, underperforming the broader Zacks Computer and Technology sector’s return of 27.8%. The Zacks Internet Software industry declined 3.5% in the same time frame.

RBRK Stock's Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Rubrik’s stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.

In terms of the forward 12-month Price/Sales, Rubrik is trading at 9.07X, higher than the industry’s 4.87X.

Price/Sales (F12M)

Zacks Investment Research
Image Source: Zacks Investment Research

Rubrik Benefits From Expanding Clientele

Rubrik’s expanding clientele, which includes major industry players such as Amazon’s (AMZN - Free Report) cloud computing platform Amazon Web Services (AWS), CrowdStrike, and Microsoft (MSFT - Free Report) , has been a key catalyst.

In November 2025, Rubrik announced a collaboration agreement with Amazon’s AWS to improve cyber resilience. This partnership combines Rubrik’s Preemptive Recovery Engine and Security Cloud with AWS’s secure infrastructure. It aims to help organizations recover from cyberattacks while safely accelerating enterprise AI adoption through Rubrik’s AI portfolio and Amazon Bedrock.

In November 2025, Rubrik announced that Rubrik Agent Cloud will work with Microsoft Copilot Studio. This will likely help businesses quickly and securely scale AI agents with thorough monitoring, governance, and remediation.

Rubrik also announced Rubrik Intelligent Business Recovery for Microsoft 365 and DevOps Protection for Azure DevOps and GitHub. This aims to provide automated, business-aware recovery, along with secure, immutable backups, for modern development pipelines.

Rubrik Faces Stiff Competition

Despite expanding clientele and portfolio, Rubrik is suffering from stiff competition from Fortinet (FTNT - Free Report) , which is also expanding its footprint in the cybersecurity market.

Fortinet is constantly enhancing its cybersecurity ecosystem to provide more comprehensive and integrated solutions.  In October 2025, Fortinet and Armis announced an expanded partnership enabling global organizations to simplify security programs and strengthen cyber resilience. 

The collaboration integrates Armis’ cyber exposure management capabilities with Fortinet’s Security Fabric, delivering a unified security ecosystem that provides unmatched visibility, real-time risk context, and automated enforcement across the modern expanded attack surface.

Conclusion

Rubrik’s expanding clientele, driven by strong cyber recovery and resilience solutions and a rich partner base, is expected to drive the company’s top-line in the to-be-reported quarter.

However, challenging macroeconomic conditions and intense competition in the cybersecurity market remain a headwind. The company also expects subscription ARR contribution margins to be seasonally lowest in the third quarter of fiscal 2026 due to the timing of net new subscription ARR and operating expenses.

Rubrik currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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